Today marked the dawn of a new era for investors in Apple Inc (Symbol: AAPL) as they witnessed the inception of fresh options for the December 2026 expiration. A crucial determinant impacting the price an option buyer will pay is the element of time value. With a substantial 1001 days until the expiration, the newly available contracts present a valuable prospect for sellers aiming to secure a higher premium compared to contracts with a more imminent expiration date.
Delving into specifics, one put and one call contract in the December 2026 AAPL options chain have piqued the interest of analysts scouring the market.
Exploring Put Contracts
At a striking $170.00, the put contract currently boasts a bid of $17.55. Those considering entering this agreement commit to purchasing the stock at $170.00, yet simultaneously acquiring the premium. This action sets the cost basis of the shares at $152.45 (prior to broker commissions). For those eyeing AAPL shares, this may present a tantalizing alternative to the current trading price of $171.54 per share.
A 1% discount to the existing trading price positions the $170.00 strike as out-of-the-money by that percentage, thereby opening the door to the possibility of the put contract expiring worthless. Presently, analytics hint at a 70% likelihood of this outcome. The probability will be continually monitored to gauge fluctuations, and a chart illustrating these figures will be accessible on the Stock Options Channel website.
The Allure of Covered Calls
On the call side, the $200.00 strike call contract touts a bid of $21.00. Envision a scenario where an investor buys AAPL shares at $171.54 apiece and executes a “covered call” by selling the $200.00 call contract. This commitment entails selling the stock at $200.00 and pocketing the premium, potentially securing a total return of 28.83% if the stock is assigned at the December 2026 expiration (excluding dividends).
Despite the prospects, the covered call may expire futile if AAPL shares skyrocket, leaving substantial gains unrealized. Monitoring AAPL’s trading history over the past year, especially in relation to the $200.00 strike, becomes imperative to make informed decisions.
Assessing Volatility
Notably, the implied volatility stands at 28% for put contracts and 23% for call contracts in the scenario. Meanwhile, the actual trailing twelve month volatility is calculated at 19%, factoring in the last 251 trading days’ closing values alongside the current price of $171.54.
To uncover more intriguing put and call options contract ideas, explore the possibilities at StockOptionsChannel.com.